Looking for advice on the distribution of estate to beneficiaries? You have come to the right place.
It is the duty of an executor of a will or if there is no will, the administrator when letters of administration have been granted, to organise the distribution of the estate to the beneficiaries. This person of course has many duties, including upholding the will if there is one, and not being tardy when administering and distributing the estate.
If you are an executor or administrator of an estate, here are some things you may want to consider with regard to the distribution of estate to the beneficiaries. Of course, if you need more assistance in this regard, we are always happy to help and you can call one of our friendly lawyers on 07 3073 2405.
Distribution of Estate to Beneficiaries – What to Consider
Get in Touch with the Beneficiaries of the Estate
As an executor or administrator you will first want to get in touch with the beneficiaries through your legal representation for numerous reasons. Firstly, this will let them know that you are doing your job as executor and moving forward the administration of the estate. Secondly, you are confirming that these are the people in the will and are legally entitled to inherit the estate.
You will need to get Probate or Letters of Administration
One of the first things you will want to do is get a grant of probate. If there is no will, you will need to apply for letters of administration.
Don’t distribute the estate too early
In some regards being an executor or an administrator of the estate is risky business. One of the biggest risks you could face is if you distribute the estate to the beneficiaries too early.
When is too early?
Well, one thing you want to make sure of is that no claims can be made on the estate before you distribute it. One way someone could make a claim on the estate is by what’s known as a Family Provision Application. Each state has different rules on who is eligible to make such a claim. In Queensland, a spouse, a child or a dependent in eligible to make a claim on the estate via a Family Provision Claim. In other States around Australia, the scope of a Family Provision Claim is even wider. Certain time limits apply to making such a claim so it is important that you seek the guidance of a lawyer if you are an executor or administrator of an estate.
If an executor wants the protection of Qld laws, he or she should not make a distribution within 6 months of the date of death.
You also need to be careful that you do not distribute the estate before estate debts are paid, so you have to ensure that all liabilities are called in before the money is distributed to the beneficiaries.
Make sure you have dealt with estate tax
That’s right there can be tax implications for estates. Tax implications can arise in the following situations including the transfer of property, life insurance, sale of assets and distributions from bank accounts. It is always prudent to seek estate tax advice before making distributions of the estate. We have accountants which we work with closely to wrap this up for you in a cost effective manner.
Get in Touch with a Lawyer before you make a distribution of the estate to beneficiaries
Unless you are trained in law and accounting, we would highly recommend getting a lawyer to help you make a distribution of the estate to the beneficiaries.
At Will and Estate Lawyers Australia, we keep things as cost effective as possible for the executor and will help you out as little or as much as you need. If you want to distribute the estate yourself, we offer a simple fixed fee probate but we can also offer a more extensive estate administration service for those who have less time and want our full assistance with distribution of estate assets.
Get in touch today on 07 3073 2405 to speak to one of our friendly lawyers who will be willing to help you further.
